Re:More information (Score 1)

Well, if you are going to make comments like this you should at least take a look at the financial statements before you do so! Their expenses for 2003 include $229.4 million in stock-based compensation expenses. They are using an accelerated basis to account for these non-cash items, that arise from the difference in employee stock option strike prices and fair market prices (currently as determined by their Board). For the period 2004-2008, the yearly amounts will be $204.8 million, $96.3, $47.5 million, $16.1 million, $3.5 million, and $1.5 million. As you can see, this is a decreasing item over time, and in any company valuation, analysts would adjust for this item. Without this line, net income for 2003 would have reached $335 million, a net margin of 34.8%, which is an amazing number! At a $25 billion valuation, this is still 75 times trailing earnings, which is arguably high, but still lower than some other internet companies.